Contributed By Ferrere Abogados
In companies that are not publicly listed, targets are not required to disclose deals in which they are involved.
In publicly listed companies, targets are required to disclose the deal when there is an effective change of control of the target – ie, when the effective acquisition occurs. However, publicly listed companies are generally required to disclose any relevant fact that may have an impact on the price of the securities, on the decision of the investors to negotiate with such securities, or on the development of the activity carried out as a participant in the market. Therefore, if the deal or potential deal meets any of the aforementioned criteria before there is an effective change of control, the target may have to disclose it sooner.